Samantha Horton
Thinking about buying shares through a trust rather than in your own name? A trust share trading account lets a trustee invest on behalf of a trust's beneficiaries — a structure many Australians use for family investing, estate planning, or investing for their kids.
This guide explains, in plain English, what a trust share trading account is, the main types, who actually owns the shares, and what you'll need to open one. It's general information to help you understand how these accounts work — not personal advice about whether a trust is right for you.
What is a trust share trading account?
A trust is a legal structure where one party (the trustee) holds and manages assets for the benefit of others (the beneficiaries). A trust share trading account is simply a brokerage account opened in the name of that trust, operated by the trustee.
In practice, the trustee makes the trades and manages the account, but the investments are held for the beneficiaries under the terms of the trust deed — the legal document that sets out how the trust runs and what it's allowed to do.
Before applying for any trust account, it's worth checking that your trust deed actually permits investing in shares. If it doesn't, you may need it updated.
Trustee vs beneficiary: who controls and who benefits
This distinction trips a lot of people up, so here it is simply:
Trustee — controls the account and makes the investment decisions. Can be an individual (or two) or a company acting as trustee.
Beneficiary — the person (or people) the trust invests for. They benefit from the investments but don't operate the account.
The same person can wear more than one hat, but the roles are legally distinct.
Types of trust accounts used for share trading
“Trust account” isn't one single thing. These are the structures Australians most commonly use to trade shares:
Family / discretionary trust — a common structure for households investing together, often set up for flexibility around how income is distributed. Frequently used for tax or estate-planning reasons (speak to a professional about your situation).
Unit trust — ownership is split into “units”, a bit like shares in a company. Often used where several parties invest together in defined proportions.
Minor (bare) trust — a “kids” account — because children under 18 generally can't hold shares directly in Australia, an adult opens the account as trustee and invests on the child's behalf until they turn 18.
Self-managed super fund (SMSF) — an SMSF is a type of trust used to invest your super. It comes with its own rules and reporting obligations.
You can see how these sit alongside individual and joint options on Selfwealth's range of account types: selfwealth.com.au/accounts. For investing for children, see the kids (minor trust) share trading account; for super, see the SMSF trading account.
Who owns the shares? CHESS, HINs and direct ownership
When a trust buys ASX-listed shares, the shares are registered in the trustee's name as trustee for the trust — held for the beneficiaries under the trust deed.
How those holdings are registered matters. With CHESS sponsorship, your ASX holdings sit on their own Holder Identification Number (HIN), meaning the trust holds its shares directly on the ASX register — there's no pooled custodian sitting between the trust and its shares. CHESS, run by the ASX, applies to ASX-listed securities only; it doesn't apply to international markets. You can read more about how CHESS works on the ASX website (asx.com.au).
Selfwealth accounts — including trust accounts — are HIN-based and CHESS-sponsored for ASX holdings, so a trust owns its Australian shares directly.
What you need to open a trust share trading account
Opening a trust account involves a few more documents than an individual account, because the provider has to verify the trust and everyone involved. As a general checklist, have these ready:
The trust deed (usually the cover page showing the trust name, trustee(s) and signatures, plus any deeds of amendment).
The trust's ABN and/or TFN — quoting the trust's Tax File Number is optional, but without it, tax may be withheld from distributions at the top rate.
Proof of identity for the trustee(s) — for example a passport or driver's licence. If a company acts as trustee, you'll also need the company's details.
Beneficiary details, to satisfy regulatory (know-your-customer) checks.
With Selfwealth, Company and Trust trading accounts are free to set up (selfwealth.com.au/company-account), and the application is done online — just have your trust deed, ABN and ID ready before you start.
Trust account vs individual account: the key differences
Individual account | Trust account | |
Who opens it | You, in your own name | The trustee, in the trust's name |
Who decides trades | You | The trustee |
Who benefits | You | The beneficiaries |
Documents needed | ID | ID plus trust deed, ABN/TFN, beneficiary details |
Tax | Assessed to you | Trust income generally flows to beneficiaries (rules vary) |
ASX ownership | Direct via your HIN | Direct via the trust's HIN |
The mechanics of trading — placing orders, funding, the platform — work much the same way once the account is open.
Tax and trusts: what to know (and who to ask)
Tax is where trusts get genuinely technical, and it's also where we have to be clear: this is general information, not tax advice.
As a broad idea, the income a trust earns (dividends, distributions, capital gains) is often assessed in the hands of the beneficiaries who are entitled to it — but the rules vary depending on the type of trust, the deed, and each beneficiary's circumstances. Minor beneficiaries, in particular, can be taxed differently.
Because the details matter so much, the responsible move is to check the current rules with the ATO (ato.gov.au) and read the plain-English explainers on ASIC's Moneysmart (moneysmart.gov.au), then get personal guidance from a registered tax agent before you invest. Selfwealth isn't licensed to give tax advice.
Trust share trading with Selfwealth
If you've established a trust and it allows investing, Selfwealth supports trust accounts natively alongside individual, joint, company, minor and SMSF accounts. What that looks like in practice:
Flat brokerage of $9.50 per trade on Australian and US markets, whatever the trade size, with no account-keeping fees.
Direct ownership of ASX holdings via a CHESS-sponsored, HIN-based structure.
Access across markets — the ASX and Cboe, the US (NYSE and Nasdaq).
Free to set up, with a straightforward online application and a dedicated cash trading account.
Trusts carry more admin than a personal account, and investing through one always carries risk, including the risk of losing money — but for households and trustees who want low, predictable brokerage and direct ownership, it's a practical way to invest.
Ready to invest through your trust? Open a Company or Trust trading account with Selfwealth (selfwealth.com.au/company-account) — have your trust deed, ABN and ID handy to get started.
Frequently asked questions
Can a trust open a share trading account in Australia?
Yes. A trust can open a brokerage account, but it must be operated by the trustee on the trust's behalf, and the provider will generally require the trust deed, trustee identification and the trust's tax details before opening it.
Who owns the shares in a trust trading account — the trustee or the beneficiary?
The trustee holds legal title to the shares (registered “as trustee for” the trust), while the beneficiaries are the ones who ultimately benefit under the trust deed. The trustee controls the trades; the beneficiaries hold the beneficial interest.
What documents do I need to open a trust share trading account?
Typically the trust deed, the trust's ABN and/or TFN, proof of identity for the trustee(s), and beneficiary details for regulatory checks. If a company is the trustee, you'll also need the company's details.
Can I open a trust account to invest for my child?
Yes. Because under-18s generally can't own shares directly, an adult opens a minor (bare) trust account as trustee and invests on the child's behalf, with the option to transfer the holdings to the child once they turn 18.
How is a trust share trading account taxed?
Trust income is often assessed to the beneficiaries entitled to it, but the rules vary by trust type and circumstances (and differ for minors). This isn't tax advice — check the current rules with the ATO and a registered tax agent.
Does Selfwealth charge more for a trust account?
No. Trust accounts trade at the same flat $9.50 brokerage on Australian and US markets as other account types, with no account-keeping fees, and are free to set up.
Important disclaimer: SelfWealth Pty Ltd ABN 52 154 324 428 (“Selfwealth”) (AFSL 421789). The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser and/or accountant. Taxation, legal and other matters referred to on this website are of a general nature only and should not be relied upon in place of appropriate professional advice. You should obtain the relevant Product Disclosure Statement for any product mentioned and consider its contents before making any decision.
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